Overview of Casino Industry in Nepal

Tarsem Singh | April 29, 2024 , 10 min read

Table Of Content

Nepal, the ‘Mountain Kingdom’ is a landlocked central Himalayan country in South Asia. The country’s beautiful landscape attracts many international tourists. Nepal’s tourism sector is the second largest contributor to its economy.

Asia and Nepal’s first Casino – Casino Nepal (now known as Casino Mahjong) opened in 1968 at Kathmandu. The Casino industry in Nepal has faced a very tough period till 2016. This began with the Nepalese government shutting down all casinos in April 2014 for failing to comply with the new ‘Casino Regulations 2013’ and non-payment of outstanding license fees. Casinos in Nepal re-opened in September 2014, again got into trouble with the government, shut down and re-opened in early 2015. Casinos were once again hit by a devastating earthquake that rattled the country and its economy on April 25, 2015. Two casinos – Casino Anna and Casino Everest were damaged due to the quake. The earthquake in April, combined with an unofficial border blockade by India, severely affected business.

Besides, the demonetization drive by the Indian government in 2016 also affected the small electronic casinos along the border

The number of tourists visiting Nepal fell by 31.8 per cent in 2015 over the previous year. This is the highest negative change in the year-on-year (yoy) growth of tourists visiting Nepal since 1964. 2015 was a tough year for the industry but it was quick to bounce back in 2016. The number of tourists visiting Nepal registered an impressive yoy growth of 39.7 per cent. As of 2019, 1.17 million tourists have visited the country.

Silver Heritage was the first group to open the Millionaire’s Club & Casino under the new ‘Casino Regulations 2013. The two casinos in Pokhara – Pokhara Grande and Casino Fulbari closed indefinitely after the new rule came into place.

Casinos in Nepal

Casinos in Nepal
Why Nepal's casino industry has huge potential?
The Downfall of Nepal’s Casino Industry
Latest developments in the Casino Industry in Nepal
How many casinos are there in Nepal?
Conclusion
Frequently Asked Questions

Casino	Location	Hotel	Sq. ft.	Table Games	Gaming Machines
Casino Mahjong	Kathmandu	Soaltee Crowne Plaza	4,500	10	60
Casino Pride	Kathmandu	Hyatt Regency	21,000	10	25
Casino Rad	Kathmandu	Radisson Hotel	12,000	21	16
Casino Royale Nepal	Kathmandu	Hotel Yak & Yeti	21,000	20	34
Millionaire’s Club & Casino	Kathmandu	Shangri La Hotel	5,000	15	38
Tiger Palace Resort	Bhairahawa	Tiger Palace Resort	26,597	44	216

Nepal has seven functional casinos. The newly opened Casino in Tiger Palace Resort is the largest one, run by the Silver Heritage Group, the biggest player in the casino industry in Nepal.

Why Nepal's casino industry has huge potential?

What works in favor of Nepal? It is a small country with a lower GDP and a population of 31 million, and it is sandwiched between two Asian superpowers: India and China.

India has a huge population of about 1.4 billion people. Indians account for the maximum number of foreign tourists visiting Nepal and, on average, about 30 per cent of the total tourists. The reason is that gambling is illegal in India except in Sikkim, Goa, and the Union Territory of Daman. The proximity of Nepal, being just over an hour of air travel from India, provides an untapped number of potential gamblers. Also, by 2031, India will have the world’s largest middle-class annual consumption of US$ 5.2 trillion. All these factors make Indians the No.1 customers for Nepalese casinos.

China is the world’s second most populous country, with a population of 1.4 billion people. Gambling is illegal in China except in the administrative regions of Hong Kong and Macau. Hence, many tourists travel from China to Nepal to gamble. Overall, it takes only about two and a half hours to travel to Nepal from China. Chinese tourists form the second-highest number of foreign tourists visiting Nepal. With the world’s second most populated country within reach, Nepal’s casinos stand to gain.

China is the world’s most populous country with a population of 1.4 billion people. Gambling is illegal in China except in the administrative regions of Hong Kong and Macau. Hence, many tourists travel from China to Nepal for gambling. Overall, it takes only about two and a half hours to travel to Nepal from China. Chinese tourists form the second-highest number of foreign tourists visiting Nepal, Indians being the first. With the world’s most populated country within its reach, Nepal’s casinos stand to gain. Also, by 2030, China will have the world’s second-largest middle-class annual consumption of US$ 10 trillion after India. Macau is now among the elite casino destinations of the world such as Las Vegas, Atlantic City, and Monte Carlo. In fact, Nepal is touted as ‘the next Macau’.

The Downfall of Nepal’s Casino Industry

The downfall of Nepal’s casino industry can be attributed to various factors that have impacted its growth and stability over the years. Some key reasons for the challenges faced by Nepal’s casino industry include:

2013/2014 Regulatory Issues

In 2013, Nepal implemented new casino regulations to enhance the industry’s integrity and government oversight. These rules, which included higher financial obligations and stricter compliance standards, placed significant pressure on the casinos, resulting in financial challenges and closures. The government deemed all casinos illegal in 2014 due to non-compliance with regulations and licensing fees. The closure of Nepal’s casinos in 2014 was primarily due to the government’s directive to shut down all casinos by April 20th if they failed to settle all outstanding dues and obtain new licenses as per the Casino Rules 2013.

The Ministry chose not to renew licenses for the ten casinos operating in various five-star hotels in the country. Some casinos did not apply for renewal within the stipulated timeframe, while others submitted incomplete applications. Some viewed the new regulations as unattainable, while others saw them as a tactic to phase out the casinos while appearing to regulate them. Some perceived the government’s actions as a “house-cleaning” effort to pave the way for foreign investors to enter the industry. These events resulted in the closure of all casinos, significantly impacting the industry’s operations and revenue streams.

2015 Natural Disasters

The natural disasters of 2015, notably the devastating earthquake in Nepal, played a significant role in the decline of the country’s casinos. The earthquake damaged infrastructure, including hotels and casinos, disrupting the tourism sector and causing a decline in tourist numbers. This disruption, alongside the destruction of critical infrastructure, impacted the operations and earnings of the casinos, contributing to their decline in 2015. The earthquake’s aftermath presented obstacles to the recovery and expansion of the casino industry, exacerbating the economic challenges faced by Nepal’s casinos at that time.

2019 Pandemic Impact

The global pandemic, particularly the shutdown of casinos in March 2020 due to COVID-19, had a devastating impact on the industry. The prolonged closure and subsequent reopening with restrictions affected the casinos’ revenue and operations, leading to financial difficulties and closures.

Latest developments in the Casino Industry in Nepal

Silver Heritage Group, the Asian Casino operator has opened a casino inside its 100-room Tiger Palace Resort Bhairahawa on 31st December 2017. This is the largest casino in Nepal. The Group already operates the ‘Millionaire’s Club and Casino’ inside the Shangri-La Hotel in Kathmandu. They have reportedly paid an ‘initial casino license’ fee of US$ 194,000 apart from a royalty fee of US$ 291,000. The 26,597 sq. ft. casino offers some 216 slots alongside 44 gaming tables and 100 hotel rooms. The resort targets Indian gamblers specifically as it is located at a distance of only seven miles from the Nepalese border with India. Uttar Pradesh is the adjacent state of Bhairahawa.
The Silver Heritage Group is looking to develop two new Tiger Resort Properties with a combined offering of over 200 gaming tables and 1,000 electronic game machines across the border.
The Deltin Group has launched their first International Venture Deltin Casino at the 214-room Marriott Kathmandu.
Two new casinos could open soon, with Vegas City International and Prime International & Recreation having applied for licenses.
Border towns like Kakarvitta, Biratnagar, Birganj, and Mahendra Nagar host small electronic casinos. These casinos cater to both locals and visitors and offer a variety of electronic games.
Widetech (Malaysia) Berhad manages and operates four electronic gaming clubs in Nepal. These clubs are strategically located along the Indo-Nepal border, attracting patrons from both countries. The clubs offer a range of gaming options and amenities to visitors.
CMG Club operates small electronic casinos in three hotels in Nepal. It is recognized as Nepal’s first and largest Electronic Entertainment Gaming Club. The casinos offer a diverse selection of electronic games and entertainment options.
Happy Valley, a sister company of Silver Heritage, is involved in operating electronic casinos on the Indian border. These casinos provide a unique gaming experience to patrons, blending international standards with local flavors.
Riyaz Hotel and Dhaka Hotel in Kakarvitta host two popular electronic casinos.
An estimated 80 percent of visitors to Kakarvitta casinos come from Siliguri, India. This highlights the cross-border appeal of these casinos and their role in promoting tourism and economic activity in the region.

Thus, with so many prospective clients from India and China, the casino industry in Nepal is expected to grow in the future.

How many casinos are there in Nepal?

Nepal currently operates six functional casinos, with the newest addition being the Tiger Palace Resort Casino. This establishment is the largest casino in Nepal and is operated by the Silver Heritage Group, the leading player in the country’s casino industry. Nepal’s casinos are primarily located in the capital city of Kathmandu. There are 6 active casinos in Nepal, all located within Kathmandu hotels, offering various gaming options such as Blackjack, roulette, video poker, poker, and slot machines.

Conclusion

Nepal’s casino industry has a rich history, but it has faced several challenges that have impacted its growth and stability over the years. The industry has undergone significant changes, with numerous regulations and policies being implemented to monitor and control its operations.

The industry’s downfall can be attributed to various factors, including regulatory issues, natural disasters, and the global pandemic. Despite these challenges, Nepal’s casino industry has a huge potential, being a popular destination for gamblers in South Asia and being situated between India and China.

With proper regulations and policies, Nepal’s casinos can thrive and contribute significantly to the country’s tourism industry and economy.

Frequently Asked Questions

Q: How is the casino industry regulated in Nepal?

The casino industry in Nepal is regulated by the government, specifically the Department of Tourism and Casino Regulation Authority.

Q: Are there any restrictions on who can gamble in Nepalese casinos?

Yes, only foreign nationals and non-resident Nepalese are allowed to gamble in Nepalese casinos. Local residents are not permitted to gamble.

Q: What are some popular casinos in Nepal?

Some popular casinos in Nepal include Casino Royale, Casino Rad, and Casino Pride.

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